Tuesday, November 4, 2008

Election rally or new crash?

My best guess is that a rally will emerge from this pre-election "rest" period, of unknown duration and amplitude. I will not play it, because I'm taking a break.



The only fly in this ointment, prediction-wise, is the continuing crash of commodities, which if it continues will IMHO ultimately undermine this rally in equities. If gold, oil (and to a lesser degree the EURO) can find their footing soon I can envision a rally in those battered sectors, supporting the market as a whole.

No comments: